Video Interview: Performance Management System in Manufacturing Companies In India


In this video interview, we have invited Mr. P K Gupta-General Manager-HR at Tek Corp Limited to discuss Performance Management System in manufacturing companies in India.  Mr Gupta has vast experience (30 years) in the field of Human Resource especially in manufacturing companies in India.


Following is the abstract of his interview with HRSUCCESSTALK.

Q 1: What kind of Performance Management System is followed in Manufacturing Industry in India?

Ans :  In past, appraisal process use to be confidential and closed mechanism. Employees never come to know about their feedback. The immediate supervisor use to rate and give inputs on employee’s performance and manager’s feedback was considered as final.

Later, this process changed. The appraisal system became more open. Performance evaluation is now a discussion between appraise and appraiser. Both are aware about the performance measures before and during discussion.

Now in Manufacturing Industry, employee is evaluated on predefined KRAs (Key Result Area) other than routine work after each financial year.  It is more on target versus achievement.


Q 2:  Most of the employees still consider Performance appraisal as increment and promotion only. We would like to know your views on this?

Ans:  Yes, generally it is like that.  In India, appraisals are looked at as increments and promotions only. But, It has to be understood that Performance Appraisal is the part of Performance Management Process which include increment and promotions. Every employee who is performing a job has to be given feedback and counseled about their performance. It is a way of rewarding as well giving increment on certain part. Appraisal is one part of total performance management process in which performance of an individual improves with the passage of time. It is not limited till increment and promotions only.


Q 3: Do you think that existing performance management system in India still has scope of improvement? If yes, what would be the scope of improvement?

Ans:  Yes, scope of improvement is always there and a very important area which needs to be looked at is clarity of work and clarity of expectation of the management from employee and the employee’s expectation from the management. Management must know what would the person supposed to do and employee should know what management wants from him. There is lack in clarity whereas management and employee both are not clear what they are expecting from each other.


Note : You can share your inputs on this topic.


  1. Mohd Mohsin October 28, 2015 6:58 am  Reply

    Very informative

  2. Ranu negi June 20, 2016 2:05 pm  Reply

    Sir I m making my summer internship report on this topic. So please will you tell me that in public sector how performance management works. Please tell me sir.

    • singh July 13, 2016 5:21 am  Reply

      In PSU it works in similar way it does in pvt. sector .
      however ; in case of state government it is different.

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